Today we launch both our Developer Dashboard and Sequencer Fee Sharing (SFS) on mainnet, marking a significant stride towards rewarding the builders who power our ecosystem. These launches embody our vision of creating an Onchain Cooperative where every contributor reaps the benefits of our collective growth.
Sequencer Fee Sharing (SFS): Rewarding Builders
The Sequencer Fee Sharing (SFS) is designed to share part of the network's revenue with those who bring activity to Mode. By tapping into the sequencer revenue, Mode offers developers 25% of Sequencer Fee Profits generated by transactions in their smart contracts. This model provides a sustainable revenue stream for developers dedicated to enhancing the Mode ecosystem.
How Does SFS Work?
Since Mode is built with the OP Stack, the block production is primarily managed by the Sequencer. Whenever someone pays gas for a transaction on any chain built with the OP stack, part of those fees goes to the network’s sequencer.
The SFS allocates a portion of Mode's sequencer fees to developers based on the transaction activity of their smart contracts. By registering their contracts to the Fee Sharing Contract, developers mint an NFT that accumulates ETH rewards which can be claimed once a month. You can also assign several contracts to one SFS NFT, allowing devs to accrue revenue from a suite of contracts with just 1 NFT. This approach fosters a transparent and equitable distribution of resources, ensuring developers are compensated fairly for their contributions.
Claiming SFS Fees
The ETH rewards on the developer dashboard update automatically, allowing developers to claim their earned ETH from SFS once a month, on the first day of each new month. When projects register their contracts to the SFS, they receive an NFT essential for claiming these fees. This NFT must be held by the wallet or the smart contract requesting the withdrawal; transferring the NFT means transferring the right to claim these fees.
Claimable Fees
Developers can claim their fees, released monthly after net earnings from transaction fees and the final gas price spent to sync with Ethereum are calculated. A minimum of 0.01 ETH is required for claims and you can claim them through the developer dashboard or directly calling the withdraw function in the SFS contract. The first claim up until the end of February is now claimable for all eligible smart contracts.
Benefits of Joining Mode's Onchain Cooperative
• Predictable Revenue: SFS allows developers to enjoy a consistent revenue stream, empowering them to reinvest in their projects, use it for user incentives or however they think is best.
• Network Growth: These initiatives are designed to improve the developer experience and a project’s access to data.
A Call to Action for Developers
As Mode continues to evolve, we invite developers to leverage these new tools and incentives to build and innovate. With SFS and the developer dashboard, we're not just offering rewards; we're building a community where success is shared and opportunities are limitless.
We're excited to see how developers will use these features to drive innovation and user engagement on the Mode Network. Join us in shaping a more inclusive, transparent, and cooperative blockchain ecosystem.
Discover More and Start Building on Mode.
About Mode
Mode is the Modular DeFi Layer 2; in integral part of the OP Superchain. We are committed to enabling new economic systems for growth, supported by a $6 million grant from Optimism. Our mission is to build a more open, efficient, and inclusive financial future.